Taiwan abandons plans to sell stake in state-controlled carrier (Taiwan)Taiwan’s Ministry of Finance decided to withdraw a planned NT$52.8 billion (US$1.74 billion) worth of Chunghwa Telecom share disposal, and will sell bonds instead to help raise part of the funds for a program on boosting the economy, a Dow Jones report said.
The government had hoped to raise NT$52.8 billion by reducing its stake in Chunghwa Telecom, Taiwan’s largest phone services provider by revenue, to as low as 30% from 35.65%, in part to help fund the NT$120 billion government spending program aimed at supporting domestic demand at a time of rising prices, the Dow Jones report said.
But some lawmakers have voiced opposition to the share disposal, the ministry said in a statement.
“To respect lawmakers, the ministry agreed to raise the full amount (NT$52.8 billion) by selling bonds,” the statement, quoted by the Dow Jones report, said.
Minister of Finance Lee Sush-der told Dow Jones Newswires on Friday the share sale was facing opposition from some lawmakers who consider Chunghwa Telecom as a good stock that generates good dividend income.
